Startup heavyweights fight encryption ahead of election

Australia's startup community has issued a plea to the government to change its encryption legislation to stop it from "cannibalising" business growth, with heavyweights Atlassian and Canva backing the calls.

It's a move to try to stem the damage ahead of the "pointy dagger over the heads of politicians" that is the upcoming federal election, says StartupAus chief operating officer Alex Gruszka.

StartupAus chief operating officer, Alex Gruszka.

"We would like it to be repealed, but right now we’ve taken the approach that we want to highlight the most egregious aspects of the bill," he says.

The controversial "Assistance and Access" laws are designed to combat terrorism and serious crimes through allowing law enforcement to compel tech companies to help decode encrypted messages. The local startup scene has lobbied hard against the policy because of concerns over data and systems security.

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In a submission to the joint committee of intelligence and security to be filed on Tuesday, the group is demanding the government redefine who it can compel to decrypt data under the laws and what crimes must be suspected before this happens.

This includes a plea to protect individual entrepreneurs and developers by changing the laws so that only a company, rather than an individual, can be ordered to fulfil a "technical capability notice".

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Experts have warned the rules, which allow agencies such as ASIO to compel businesses to decrypt data to assist in fighting crime, could mean entrepreneurs face prison time if they refuse to help authorities decrypt data.

Gruzska says consultation with the department of home affairs has seen the government tell the startup sector that the laws are not intended to target individuals, but StartupAus says "intentions can change over the years" and it wants the legislation to explicitly rule this out.

Atlassian co-founder Scott Farquhar added his voice in support of the submission, saying instead of boosting tech potential in Australia, "we’re anchoring it with legislation that hurts us".

Co-founder of Canva, Cliff Obrecht, echoed this, saying the tech community welcomed further consultation on the laws.

"We welcome a formal consultation to amend the Act so it is practical for our burgeoning tech industry, without cannibalising on our efforts to innovate," he said.

StartupAus is also calling for the laws to be narrowed to apply to only communications-based companies, rather than the broad array of internet-focused businesses the act currently covers.

There's also a call to narrow the types of crimes that can result in a decryption notice being issued.

The current definition, which includes crimes carrying a three-year jail term, is too loose considering the potential security implications of decryption, StartupAus says.

"The definition of ‘serious crime’ should be restricted only to those crimes which are the stated target of the Act, that pose a genuine and serious threat to Australia and its citizens," the group said in its submission.

The legislation passed in December 2018 and is now law. The current consultation relates to amendments to the legislation that were passed last year without debate.

The government has previously advised Sydney Morning Herald and The Age that it will consider the submissions once the committee has reported back in April.

Gruszka says local startups are focused on minimising damage caused by the laws. However, injuries have already been sustained, he says.

"I think it definitely hurts - this has hurt the tech sector in Australia at a time where it’s really starting to flourish."